Question

UPSC Prelims 2023 Question:

Consider the following statement

Statement – I: India accounts for 3.2% of global export of goods.

Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.

Which one of the following is correct in respect of the above statements?

1. Both statement-I and Statement II are correct and Statement II is the correct explanation for Statement-I
2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3. Statement-I is correct but Statement-II is incorrect.
4. Statement-I- is incorrect but Statement-II is correct.

Answer (Detailed Solution Below)

Option 4: Statement-I- is incorrect but Statement-II is correct.

Detailed Solution

Explanation:

As per the WTO data released in April 2019, for the year 2018, India’s share in global exports for merchandise was 1.7 % and in global imports was 2.6 %. For the year 2018, for the service sector, India’s share in global exports was 3.5 % and imports was 3.2 %. So, statement 1 is not correct.
Production-linked Incentive schemes are a cornerstone of the Government’s push for achieving an Atmanirbhar Bharat. The objective is to make domestic manufacturing globally competitive and to create global Champions in manufacturing. The strategy behind the scheme is to offer companies incentives for incremental sales from products manufactured in India over the base year. So, statement 2 is correct.

Therefore, option (4) is the correct answer.

Subject: Economics | Industry

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